Hml Hldgs revenue surged on 24.2% and EBITDA Margin showed almost no change
26 Jun 2018 • About Hml Hldgs (
$HMLH) • By InTwits
Hml Hldgs reported FY2018 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Hml Hldgs is a fast growth stock: FY2018 revenue growth was 24.2%, 5 year revenue CAGR was 15.2% at FY2018 ROIC 9.1%
- EBITDA Margin is relatively stable: 9.8% in FY2018 vs. 10.1% in FY2017 vs. 10.1% in FY2014
- Hml Hldgs has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.9%. At the same time it's in pair with industry average of 4.2%
- CAPEX is quite volatile: £0m in FY2018, £0m in FY2017, £0m in FY2016, £1m in FY2015, £0m in FY2014
- The company has business model with low profitability: ROIC is 9.1%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Hml Hldgs's Revenue surged on 24.2%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 3.3 pp from 7.0% to 10.2% in FY2018.
Net Income margin decreased slightly on 0.51 pp from 5.0% to 4.5% in FY2018. Net Income margin stuck to a declining trend at -0.28 pp per annum in FY2014-FY2018.
Investments (CAPEX, working capital and M&A)
In FY2018 the company had CAPEX/Revenue of 1.6%. The company's CAPEX/Revenue decreased slightly on 1.5 pp from 3.1% in FY2015 to 1.6% in FY2018. It's average level of CAPEX/Revenue for the last three years was 1.5%.
Return on investment
The company operates at low ROIC (9.1%) and ROE (8.6%). ROIC showed almost no change in FY2018. ROE decreased slightly on 0.52 pp from 9.1% to 8.6% in FY2018. ROIC followed a declining trend at -0.97 pp per annum in the last 5 years. ROE stuck to a declining trend at -0.74 pp per annum in FY2014-FY2018.
Leverage (Debt)
Company's Net Debt / EBITDA is 0.6x and Debt / EBITDA is 0.7x. Net Debt / EBITDA dropped on 0.7x from 1.3x to 0.6x in FY2018. Debt dropped on 38.0% while cash surged. During the last 5 years Net Debt/EBITDA topped in FY2017 at 1.3x.
Hml Hldgs has short term refinancing risk: cash is only 50.9% of short term debt.
Financial and operational results
FY ended 31 Mar 2018
Hml Hldgs ($HMLH) key annual financial indicators| mln. £ | 2014 | 2015 | 2016 | 2017 | 2018 | 2018/2017 |
|---|
P&L
|
|---|
| Revenue | 14.763 | 17.227 | 18.564 | 20.910 | 25.968 | 24.2% |
| SG&A | | 0.056 | 0.046 | | | |
| EBITDA | 1.492 | 1.725 | 1.871 | 2.115 | 2.553 | 20.7% |
| Net Income | 0.836 | 0.928 | 1.012 | 1.042 | 1.162 | 11.5% |
Balance Sheet
|
|---|
| Cash | 0.203 | 0.000 | 0.000 | 0.000 | 0.269 | |
| Short Term Debt | 0.173 | 0.657 | 0.597 | 1.119 | 0.529 | -52.7% |
| Long Term Debt | 0.086 | 0.000 | 0.425 | 1.679 | 1.207 | -28.1% |
Cash flow
|
|---|
| Capex | 0.237 | 0.539 | 0.280 | 0.306 | 0.410 | 34.0% |
Ratios
|
|---|
| Revenue growth | 15.3% | 16.7% | 7.8% | 12.6% | 24.2% | |
| EBITDA growth | 25.6% | 15.6% | 8.5% | 13.0% | 20.7% | |
|
|---|
| EBITDA Margin | 10.1% | 10.0% | 10.1% | 10.1% | 9.8% | -0.3% |
| SG&A, % of revenue | | 0.3% | 0.2% | | | |
| Net Income Margin | 5.7% | 5.4% | 5.5% | 5.0% | 4.5% | -0.5% |
| CAPEX, % of revenue | 1.6% | 3.1% | 1.5% | 1.5% | 1.6% | 0.1% |
|
|---|
| ROIC | 12.5% | 12.5% | 11.3% | 9.6% | 9.1% | -0.5% |
| ROE | 11.3% | 11.1% | 10.8% | 9.1% | 8.6% | -0.5% |
| Net Debt/EBITDA | 0.0x | 0.4x | 0.5x | 1.3x | 0.6x | -0.7x |
Peers in Real Estate Investment & Services
Below you can find Hml Hldgs benchmarking vs. other companies in Real Estate Investment & Services industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
Top companies by Revenue growth, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Plaza Centers Nv ($PLAZ) | 131.0% | -13.4% | -53.3% | 664.4% | |
| PIK Group OJSC ($PIK) | -2.1% | -16.5% | 17.5% | 191.5% | |
| London & Associated Properties ($LAS) | -22.6% | -2.6% | -9.1% | 51.4% | |
| Etalon Group Ltd ($ETLN) | 29.0% | -17.6% | 15.6% | 44.1% | |
| Formation Group ($FRM) | 35.8% | 199.3% | 23.8% | 25.8% | |
| |
|---|
| Median (20 companies) | 5.8% | 5.5% | 8.7% | 8.3% | 40.1% |
|---|
| Hml Hldgs ($HMLH) | | 16.7% | 7.8% | 12.6% | 24.2% |
Top companies by Gross margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Arricano Real Estate ($ARO) | 96.5% | 96.1% | 96.4% | 96.5% | |
| Summit Germany Ltd ($SMTG) | | 92.3% | 92.2% | 92.2% | |
| Caledonian Trust ($CNN) | 43.2% | | 50.4% | 80.5% | |
| Panther Securities ($PNS) | 68.0% | 73.5% | 75.2% | 70.8% | |
| Songbird Estates ($SBD) | 70.7% | 72.5% | 72.8% | 68.6% | |
| |
|---|
| Median (15 companies) | 38.5% | 34.5% | 42.0% | 31.0% | |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Summit Germany Ltd ($SMTG) | 89.3% | 75.5% | 129.4% | 241.4% | |
| Arricano Real Estate ($ARO) | -138.3% | 12.7% | 190.4% | 238.1% | |
| Caledonian Trust ($CNN) | -59.1% | | 17.4% | 191.0% | |
| Safestore Hldgs ($SAFE) | 77.7% | 128.4% | 95.1% | 84.8% | |
| Raven Russia Ltd ($RUS) | 4.7% | -52.3% | 40.4% | 75.8% | |
| |
|---|
| Median (19 companies) | 20.4% | 26.7% | 32.8% | 28.6% | 19.5% |
|---|
| Hml Hldgs ($HMLH) | 10.1% | 10.0% | 10.1% | 10.1% | 9.8% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Panther Securities ($PNS) | 26.0% | 15.7% | 3.7% | 68.6% | |
| Taliesin Property Fund Ltd ($TPFZ) | 45.2% | 43.7% | 37.2% | 40.5% | |
| Hagl JSC ($HAG) | 145.6% | 127.1% | 55.5% | 30.0% | |
| St.Modwen Properties ($SMP) | 36.7% | 55.8% | 31.3% | 19.3% | |
| Safestore Hldgs ($SAFE) | 6.3% | 7.2% | 24.5% | 16.7% | |
| |
|---|
| Median (20 companies) | 6.3% | 8.1% | 1.5% | 1.8% | 1.4% |
|---|
| Hml Hldgs ($HMLH) | 1.6% | 3.1% | 1.5% | 1.5% | 1.6% |
Top companies by ROIC, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Arricano Real Estate ($ARO) | -12.3% | 1.7% | 34.2% | 43.8% | |
| Damac Real Estate Development Ltd ($DMC) | 31.3% | 41.5% | 24.5% | 16.0% | |
| Summit Germany Ltd ($SMTG) | 7.1% | 5.6% | 9.2% | 15.8% | |
| Taliesin Property Fund Ltd ($TPFZ) | 0.3% | -3.0% | 15.3% | 15.1% | |
| Etalon Group Ltd ($ETLN) | 14.3% | 10.2% | 6.6% | 12.6% | |
| |
|---|
| Median (20 companies) | 3.2% | 4.9% | 6.4% | 6.4% | 6.1% |
|---|
| Hml Hldgs ($HMLH) | 12.5% | 12.5% | 11.3% | 9.6% | 9.1% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Development Securities ($DSC) | 10.3x | 3.5x | 5.7x | 70.8x | 3.9x |
| Hagl JSC ($HAG) | 14.2x | 14.8x | 30.8x | 11.7x | |
| Songbird Estates ($SBD) | | 12.3x | 12.4x | 11.3x | |
| Farglory Land Development Co Ltd ($FLDS) | 5.7x | 4.4x | 4.8x | 8.9x | |
| Panther Securities ($PNS) | 11.8x | 9.7x | 9.4x | 8.5x | |
| |
|---|
| Median (17 companies) | 9.9x | 4.5x | 5.2x | 4.0x | 3.9x |
|---|
| Hml Hldgs ($HMLH) | 0.0x | 0.4x | 0.5x | 1.3x | 0.6x |
